SAMM

September 2008

Type 2 Diabetes Drugs

Report Authors
Nathan Calloway, M.A.
Paul Santoro
Jason Labonte, Ph.D.
Catherine Vasilakis-Scaramozza, M.P.H.

Introduction:

Competition in the generic-heavy type 2 diabetes market is intensifying as brands struggle to attain and hold market share. In this edition of Strategic Assessment of Managed Markets, Decision Resources examines the relationship between a drug’s formulary placement and level of access in each of the 50 largest US cities and ties this directly to the drug’s performance. In each city we examine the five largest managed care organizations’ formulary tier structure and prescribing limitations placed upon antidiabetic agents. In addition we are introducing a truly unique and insightful examination of the prevalence of type 2 diabetes and the projected drug treatment rates for each of the 50 major markets to identify areas of under-treatment and possible growth opportunities.

In this report we examine the dynamic type 2 diabetes market managed care strategy within the United States among branded products.  Recent safety concerns with PPAR-gamma agonist formulations have made an early impact in market share among the top brands in the type 2 diabetes market. Actos and Avandia, two products in the middle of their life cycle, have held the top two brand positions within this market for some time, but increasing competition from new DPP-IV introductions Januvia and Janumet threatens to challenge their market dominance. The DPP-IV introductions are gaining attention as the next breakthrough in diabetes treatment and are making progress building market share within the top 50 MSAs, especially considering that they currently have very limited formulary access within these markets. Fixed-dose combinations constitute the middle of the type 2 diabetes market yet may see their overall share decline in the wake of PPAR-gamma agonist safety concerns and the introduction of new agents into the marketplace. Byetta, an injectable GLP-1 analogue, exhibits strong growth and the improved delivery profile of newer formulations will also influence Byetta’s market share.

For easy review we provide both an in-depth report that highlights the findings of our research and three Excel-based dashboards organized for each city (MSA), health plan, and branded drug. Each dashboard examines the dominant drivers of performance such as formulary tier status, restrictions to access, co-pay for generic, preferred brand and non-preferred brand. In addition, we examine the plans spend level by generics and brand (preferred and non-preferred) and, in the MSA dash, we provide disease prevalence numbers, drug-treated estimates, dominant managed care organizations ranked by commercially insured Rx lives, and the formulary status for major brands prescribed to control diabetes.

This combined insight provides a unique examination of the type 2 diabetes drug market viewed through the filters of formulary access and MSA prevalence to drug treated ratio to provide actionable avenues to increase market share of marketed drugs or to plan the launch of a novel agent into the type 2 diabetes market.

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